Apple company swot analysis

SWOT Analysis of Apple Inc. – Apple SWOT Analysis

A SWOT analysis is an amazingly simple, yet powerful tool to help you expand your business strategy, whether you’re building a startup or guiding an existing company.

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT Analysis of Apple 2021 is a technique for assessing these four aspects of Apple Inc.

Nowadays technology is developing more and more due to that our lifestyle is becoming more convenient, for instance, we can do any transactions or shopping by using Mobile, Computer, Tablet.

We know that the Apple brand is very popular for its features so some people want to use its products like TV, iPhone, Watch, Mac, etc.

Apple SWOT analysis 2021 involves the improvement of strengths, weaknesses, opportunities, and threats that are faced by a company while normal operations.

If you want to find out more about the SWOT of Apple Company, you’re in the right place.

Apple Background:

Apple is a multinational company that makes personal computers called the Macintoshes (Mac), software (macOS, iOS, watchOS, and tvOS), and mobile devices (iPod, iPhone, and iPad) like music players.

• Steve Jobs
• Steve Wozniak
• Ronald Wayne

Company Name	Apple Inc.
Industry Type	Public (Technology Company)
Founded	April 1, 1976
Logo
Founders
Headquarters	1 Apple Park Way, Cupertino, California, U.S.
	Tim Cook
Products and Services
Revenue	US$274.515 billion (2020)
	US$66.288 billion (2020)
	US$57.411 billion (2020)
	147,000 (2020)
Website	www .apple .com
Competitors	Microsoft, Lenovo, Google, Samsung, Toshiba, Dell, Sony, HP, Acer, Netflix, Disney, Amazon, Chase, CitiBank, Youtube

SWOT Analysis of Apple

Arrange a project on SWOT Analysis for Apple to get your organization’s best advantage. Also, you can decrease the chances of failure, by understanding what you’re requiring and eliminating risks that would otherwise catch you suddenly.

SWOT Analysis of Apple

Apple’s Strengths

• It has a unique system to design and produce proprietary hardware, software, applications, and services.
• Apple is one of the most established and healthy IT brands in the World and has a very loyal set of enthusiastic customers that advocate the brand.
• The company’s strong brand recognition provides a competitive edge over regional and other global competitors.
• The leadership of the company is very strong and the company has been able to achieve success due to the good management and leadership aspects of the company.
• More than 50% of its revenues derive from outside the U.S., its domestic market. A balanced appearance in sophisticated as well as rising markets has allowed the organization to record constant revenue growth.
• In SWOT Analysis of Apple Supply Chain globally to make its products accessible online and in stores.
• Further, it also sells through various trade partners who help the company to expand its reach throughout the globe.
• With the iTunes store where you can get music, videos, short films, TV shows, podcasts, audiobooks, and ebooks they established a unique position on the digital market exclusive for Apple products.
• In addition to its stylish design, the products of the company were also characterized by attractive displays, a post-industrial feel, and clean lines. Product diversification had also been a major strength of the company, it was fueled by the company’s ability to maintain a strong customer focus.
• Apple is one of the most demanding brands in corporate offices. The reason behind this popularity is a specific Apple business page that provides solutions for every business’s needs.
• Another important strength of the company is its advanced and attractive advertising and marketing abilities.

Apple’s Weaknesses

• The biggest weakness of Apple Company has to be its premium pricing strategy. High prices attract customers from the middle- and high-income brackets, and prevent customers from low-income brackets.
• A key issue in Apple as a company is It is not flexible while you want to connect it with devices that are from other brands. Apple iPhone does not allow you to get the software installed from other sources other than its providers.
• Tracking customers is not a good thing at all. Apple has been blamed for tracking users through apps on their phones. So, they can know the exact location of consumers. But in the new version of Apple’s phones, you can decline the tracking feature.
• We have noticed that the product line is very narrow in the weakness section of the Apple inc SWOT. For the last decade, it has been developing the same-looking iPhones with updated features.
• With SWOT Analysis of Apple iPhone, it did not differ from its first look much than the latest model about their look. Oppositely, other manufacturers such as HTC, ASUS, and Samsung are offering products with unique and attractive looks when it is about smartphones.

Apple’s Opportunities

• The lifestyle of people is changing, in both developing and developing countries, such that people prefer the use of computers and other electronics. The demand for electronics and computers is predicted to increase in the future and this will provide Apple with more market opportunities.
• With the help of qualified developers, researchers, and product specialists competent professionals, Apple regularly builds new opportunities and services.
• The use of cables in electronics is becoming outdated and wireless products provide more opportunities for Apple to sell its digital products.
• To generate higher revenue, they need to be more focused on unlimited advertisement and promotion. They have the capability to increase their distribution network.
• People with an increase in demand for Online Products people want more online music and content and Apple is tapping this market by bringing innovative products, so it can lead the market.
• Apple can increase its revenue and profit margins by using green technology, smart wearable technology, artificial intelligence, music streaming services, self-driving software technology.
• It may offer cheaper products to attract middle or low-income customers to increase its customer frequency.

Apple’s Threats

• Apple is confronted by strong competition in all areas of its businesses, like Microsoft, Samsung, Amazon, HUAWEI, Lenovo, Sony, Dell, etc.
• The rivals also constitute a huge range of small enterprises that produce products that are either branded or unbranded and often attract customers throughout the globe by using discounts.
• The iPod and Mac products of the company have a very high demand in the global market today. However, the decline in demand can affect the number of sales made by the company.
• The confidential information related to the launching of new products of the company. The employees of the company can leak information about Asteroid products.
• Recently, Due to CoronaVirus Outbreak, the US government has obliged a higher tariff on imports from China, which can cause an increase in the cost of the product.

Conclusion

Lastly, Thank you for reading my post, which is about the SWOT Analysis of Apple Company to craft a strategy that distinguishes you from your competitors, and so compete successfully in your market.

That’s it for our report on the SWOT analysis of Apple. I have gone over each of the four aspects of SWOT: Strengths, Weaknesses, Opportunities, and Threats.

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SWOT analysis of Apple Inc – Apple SWOT analysis

June 4, 2020 By Hitesh Bhasin Tagged With: SWOT

The top brand of the world, Apple has many more strengths then weaknesses. And at the same time, the threats against Apple are rising because it is obviously in the target radar of a lot of companies. The Apple SWOT analysis presents the analysis of this innovative company and how it is the leading the market in technology.

Table of Contents

Let us discuss the SWOT analysis of Apple as a company

Strengths in the SWOT analysis of Apple

1. Innovative products – One of the key strengths of Apple over the years has been its innovative product line up. Apple has presented hit products after hit products and that’s been the major strength of Apple. Initially it came with the MacBook, then the iPod, the Iphone, the Ipad, the Iwatch. In short, Apple has covered almost everything that an individual “desires”.
2. Leadership position – As per Wikipedia, Apple is the leading technology company in the world with regards to revenue generated. It is also the second largest smart phone manufacturer. It become the first US company to cross 700 billion dollars and in 2014 was the largest publicly traded company in the world. If that does not define leadership, then nothing else can. Apple is far ahead in the leadership game.
3. Brand equity – Naturally, being in the leadership position requires that your brand equity be high. The brand Apple is the number 1 valued brand amongst all the companies in the world as of 2016. The brand value in 2015 was estimated to be 118.9 Billion dollars!!
4. Design & Technology – The best part of Apple, and the reason for its fantastic brand equity is its design as well as the technology it uses. Apple has always been suave and elegant in its product design. And at the same time, beneath this exquisite design is a machine powered to give ultimate performance. All this runs on the MacOS which is another software known for its efficiency.
5. Distribution – Apple swot analysis tells us that Apple has 470 of its own stores across 17 countries. Besides these stores, it sells through trade partners, online channels as well as through other premium retail stores. Entering an Apple owned retail store is a fantastic experience. Additionally, Apple also launched the Apple genius bar to directly solve customer issues within the retail store itself. Thus, the concentration of Apple on its sales and service distribution is legendary.
6. Steve jobs – One of the key factors and the leader of Apple is also a loved person in the technology Industry. He is an inspiration to all marketers in the way that he led his own people and the way he carried his life and the brand Apple along with him. Since 2011, his departure from this world, Apple has been led by Tim cook who is also showing his genius in growing Apple as a company.
7. Margins – One of the core advantages of Apple as a company is the margins that it commands over its products. Being a technological leader with a top brand equity, Apple swot analysis results tells us that apple keeps a hefty margin for itself to invest in R&D and brand building. Furthermore, its pricingstrategy is such that the price does not break in the market and you will always find Apple selling at the same price in various retail stores.
8. Consumer focus – Apple always designs its products with a focus on consumers while keeping their mind in the future. They always try to imagine the things which even the consumer has not imagined yet. As per Steve jobs “if you ask the consumer what he wants, by the time you give him the same thing, he will want something else”. This ideology is the reason of success for Apple.

Weaknesses in the SWOT analysis of Apple

With a company which is a market leader and innovative, we can expect very few weaknesses. Still, here are 3 weaknesses which Apple might be facing.

1. Matching Customer expectations – Being a leading company since 1980’s Apple has a major market share and the consumer expectation is going through the roof. People expect great things from apple year after year and maintaining these expectation levels is not easy for anyone.
2. Incompatibility – A key issue in Apple as a company is that many of its products are incompatible with third-party software / accessories. So overall, when you buy a product of Apple, you enter the Apple universe and you have to continue with Apple only. That makes a huge impact on consumer decision making.
3. Dependency on few products – Apple has only 7-8 products in its portfolio in comparison to the various products that its closest competitors Microsoft and Google have. Hence the dependency of Apple on each of its products is very high. If one product fails, then that is a 10% loss to Apple. Hence, there is a common demand from Apple to increase its product portfolio.

Opportunities in the SWOT analysis of Apple

1. Apple cars – Naturally, with Facebook expanding with Instagram, Occulus rift, Whatsapp and others and Google expanding in 10 different ways, Apple wanted to find out some new products which Apple could launch. Apple is now fixated on Apple Car which is supposed to be launched in 2020. Like any other product of Apple, we can expect great things from the Apple car as well.
2. Technological advancement – In the technology industry, technological advancement is always an opportunity. And the one brand we can expect to leverage technology to its best is Apple. We can expect even more advanced MacBook’s, Iphones, Ipads and Iwatches in the coming years.
3. The growing market – Apple is a growing company in a growing market. Equally important to the company is the rising GDP of developing countries, thereby increasing consumption of such premium brands like Apple. Any company which is growing needs a larger market base and the market base is slowly being built via territory expansion for Apple.
4. Iwatch and Apple TV – Two products which can increase the presence even further are the Iwatch and Apple TV, both of which are aimed at the future, for when the digital presence increases. Apple Iwatch already has a 50% market share of Smart watches in US.

Threats in the SWOT analysis of Apple

Apple as a company does not have any threat. But as products, each of the products is facing strong threats from the competition. Being the number 1 company in the world is not easy and you are going to face competition especially from other brands.

1. Market penetration in Smartphones – One of the key threats to Apple is the market penetration by other brands in the Smartphone market. Android is eating market share like anything and currently has 47.5% of the market share whereas Iphone is at 42% market share. Android is being used by Samsung, HTC, Lenovo and practically everyone who wants to enter the smart phone market. Naturally Android being of Google (2nd most valued brand), Apple has to be ready for Smartphone competition.
2. Laptop competition – MacBook is obviously the best there is. But so is Dell, and so is Sony and so is Lenovo. The competition is ever-increasing in the laptop segments. Dell has introduced some beautiful models over the years including the Alienware model. So, although Apple as a brand is loved by everyone, MacBook is facing stiff competition from other brands as well.

Smartphones replacing Ipod – In 2014, Ipod suffered a major decline of 52% in its sale over 2013. Overall, Smartphones have replaced music players altogether because of the various ways that you can utilise music and carry it around. Hence the functionality of Ipod is no more unique. (Other “Only music players” are also finding it hard to exist in the market).

Thank you for reading our article about apple swot analysis

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